Isabella Carter
The 16th Amendment to the United States Constitution, passed by Congress on July 2, 1909, and ratified on February 3, 1913, established Congress's right to impose a federal income tax on individuals and corporations without apportioning it among the states on the basis of population. The amendment was proposed by President William Howard Taft and was the first change to the Constitution since the passage of the 15th Amendment. It was a response to the 1895 Supreme Court case of Pollock v. Farmers' Loan & Trust Co., in which the Court held that Congress could not impose a tax on personal property or income from personal property without apportioning the tax among the states according to population. The 16th Amendment's ratification had far-reaching social and economic impacts, dramatically changing the American way of life.
| Characteristics | Values |
|---|---|
| Date proposed | June 16, 1909 |
| Proposer | President William Howard Taft |
| Date passed by Congress | July 2, 1909 |
| Date ratified | February 3, 1913 |
| Ratified by | Secretary of State Philander Knox |
| Ratifying states | Delaware, Wyoming, New Mexico, and 39 others |
| Purpose | To relieve all income taxes from the requirement of apportionment and from a consideration of the source whence the income was derived |
| Powers granted | Empowered Congress to impose an income tax on individuals and corporations |
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What You'll Learn
- The 16th Amendment established Congress's right to impose a federal income tax
- It was passed by Congress in 1909
- The amendment was ratified in 1913
- It was a response to the 1895 Supreme Court case of Pollock v. Farmers' Loan & Trust Co
- The amendment was first proposed by Senator Norris Brown of Nebraska
The 16th Amendment established Congress's right to impose a federal income tax
The 16th Amendment to the United States Constitution, also known as Amendment XVI, established Congress's right to impose a federal income tax. It was passed by Congress in 1909 and ratified on February 3, 1913, by three-fourths of the states, as required. The amendment was proposed by Senator Nelson W. Aldrich of Rhode Island, the Senate Majority Leader, and Finance Committee Chairman, as part of the congressional debate over the 1909 Payne-Aldrich Tariff Act.
The 16th Amendment was a direct response to the 1895 Supreme Court case of Pollock v. Farmers' Loan & Trust Co., in which the Court held that Congress's attempt to tax incomes uniformly across the United States was unconstitutional. The Court ruled that a tax on incomes derived from property was a "direct tax," which Congress could impose only by apportioning it among the states according to population. This ruling caused concern among members of Congress, who feared that it would allow the wealthiest Americans to consolidate too much economic power.
The 16th Amendment's authorization of a federal income tax had far-reaching social and economic impacts. It enabled the passage of the Revenue Act of 1913, which implemented a federal income tax and greatly lowered tariffs. The amendment also put an end to speculation about whether the Court would persist in its interpretation of the Constitution regarding income taxes without a constitutional amendment.
The 16th Amendment originated personal income tax and empowered Congress to impose an income tax on individuals and corporations without apportioning it among the states based on population. This marked the first change to the Constitution since the passage of the 15th Amendment, which guaranteed the right to vote regardless of race.
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It was passed by Congress in 1909
The 16th Amendment to the United States Constitution was passed by Congress on July 2, 1909, and ratified on February 3, 1913. It was the first change to the Constitution in 43 years, since the passage of the 15th Amendment in 1870, which guaranteed African-American male suffrage.
The 16th Amendment was proposed by Senator Nelson W. Aldrich of Rhode Island, the Senate Majority Leader and Finance Committee Chairman, as part of the congressional debate over the 1909 Payne-Aldrich Tariff Act. Aldrich and other conservative leaders in Congress hoped to temporarily defuse progressive calls for the imposition of new taxes in the tariff act. They believed that an amendment enacting an income tax would never be ratified by three-fourths of the states, as required.
However, the amendment was ratified by one state legislature after another, and on February 25, 1913, with the certification by Secretary of State Philander C. Knox, the 16th Amendment took effect. The amendment established Congress's right to impose a federal income tax on individuals and corporations, without apportioning it among the states on the basis of population. This marked a significant shift in the way income taxes were levied in the United States, as previously, taxes on incomes from certain sources had been considered "direct taxes" under the constitutional requirement of apportionment.
The Revenue Act of 1913, which implemented a federal income tax, was enacted shortly after the ratification of the 16th Amendment. This Act greatly lowered tariffs and introduced a graduated income tax, which had significant social and economic impacts on the country.
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The amendment was ratified in 1913
The 16th Amendment to the United States Constitution, which was ratified in 1913, established Congress's right to impose a federal income tax. The amendment was first proposed by Senator Norris Brown of Nebraska, who submitted two proposals, Senate Resolutions Nos. 25 and 39. The amendment proposal finally accepted was Senate Joint Resolution No. 40, introduced by Senator Nelson W. Aldrich of Rhode Island, the Senate majority leader, and Finance Committee Chairman. The proposal was made as part of the congressional debate over the 1909 Payne-Aldrich Tariff Act.
The 16th Amendment originated personal income tax and gave Congress the power to levy a graduated income tax on the earnings of American workers. This meant that Congress could impose an income tax on individuals and corporations without apportioning it among the states on the basis of population. The amendment was ratified by the requisite number of states (36) on February 3, 1913, and was subsequently ratified by six additional states, bringing the total to 42 of the 48 then-existing states.
The ratification of the 16th Amendment was the direct consequence of the Supreme Court's 1895 decision in Pollock v. Farmers' Loan & Trust Co., which held that Congress's attempt to tax incomes uniformly across the United States was unconstitutional. The Court ruled that a tax on incomes derived from property was a "direct tax," which Congress could impose only by the rule of apportionment according to population. The 16th Amendment thus overruled the Supreme Court's ruling in Pollock and relieved all income taxes from the requirement of apportionment.
The Revenue Act of 1913, which greatly lowered tariffs and implemented a federal income tax, was enacted shortly after the ratification of the 16th Amendment. This Act lowered tariffs and implemented a federal income tax, marking a shift from the late 19th century and early 20th century, when most federal revenue came from tariffs rather than taxes.
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It was a response to the 1895 Supreme Court case of Pollock v. Farmers' Loan & Trust Co
The 16th Amendment to the US Constitution, ratified in 1913, granted Congress the power to levy and collect income taxes without apportioning the taxes among the states or basing them on the United States Census. This amendment was a direct response to the Supreme Court ruling in the 1895 case of Pollock v. Farmers' Loan & Trust Co., which had a significant impact on the interpretation of the Constitution and the power of the federal government to tax income.
In the Pollock case, the Supreme Court considered the constitutionality of the Income Tax Act of 1894, which imposed a flat rate income tax of 2% on all income over $4000. Charles Pollock, a stockholder in the Farmers' Loan & Trust Company, argued that this tax on income derived from property, in the form of interest and dividends, was effectively a direct tax on property and, therefore, unconstitutional. The Court agreed, ruling that taxes on income derived from property were indeed direct taxes and, as such, had to be apportioned among the states based on population. This interpretation greatly restricted the federal government's ability to levy income taxes.
The Court's decision in Pollock was based on a particular interpretation of the Constitution's wording regarding direct taxes. Article I, Section 2, Clause 3 of the Constitution states, "Representatives and direct Taxes shall be apportioned among the several States which may be included within this Union, according to their respective Numbers." This apportionment clause, as interpreted by the Court in Pollock, meant that any direct tax, including taxes on income derived from property, had to be apportioned based on the population of each state.
The 16th Amendment was a direct response to this ruling and sought to remove the constraints placed on income taxation by the Pollock decision. The Amendment states: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." By adding this Amendment, Congress was given the explicit power to tax income without the need for apportionment, thereby overcoming the restrictions imposed by the Supreme Court's interpretation in the Pollock case.
The passage of the 16th Amendment had far-reaching consequences for the federal government's revenue-raising abilities and the development of the income tax in the United States. It allowed for a more stable and consistent source of revenue, which became increasingly important as the government's responsibilities and expenditures grew in the 20th century. The Amendment also shifted the focus of taxation away from indirect taxes, such as tariffs, towards direct taxes on income, which were seen as a more equitable way of distributing the tax burden across the population.
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The amendment was first proposed by Senator Norris Brown of Nebraska
The 16th Amendment to the United States Constitution was first proposed by Senator Norris Brown of Nebraska. Born in Maquoketa, Iowa, in 1863, Brown graduated with a law degree from the University of Iowa College of Law in Iowa City, Iowa, in 1883. He was admitted to the bar in 1884 and began practising law in Kearney, Nebraska, in 1888. Before his election to the Senate, Brown served as the prosecuting attorney of Buffalo County from 1892 to 1896 and as the attorney general of Nebraska from 1905 to 1907.
Brown sponsored the 16th Amendment, which legalized the federal income tax. The amendment was passed by Congress in 1909 and ratified on February 3, 1913, establishing Congress's right to impose a federal income tax without apportioning it among the states based on population. The amendment overruled the Supreme Court's ruling in Pollock v. Farmers' Loan & Trust Co., which had designated some income taxes as direct taxes.
Senator Norris Brown submitted two proposals for the amendment, Senate Resolutions Nos. 25 and 39. However, the proposal that was ultimately accepted was introduced by Senator Nelson W. Aldrich of Rhode Island, the Senate Majority Leader and Finance Committee Chairman. The proposal was made as part of the congressional debate over the 1909 Payne-Aldrich Tariff Act, with Aldrich aiming to temporarily deflect progressive calls for new taxes in the tariff act.
The 16th Amendment had far-reaching social and economic impacts, becoming a pivotal aspect of the Constitution. It originated the modern income tax, authorizing Congress to institute a graduated income tax on the earnings of American workers. This enabled the enactment of the Revenue Act of 1913, which significantly lowered tariffs and implemented a federal income tax.
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Frequently asked questions
The 16th Amendment added the establishment of a federal income tax to the US Constitution.
The 16th Amendment was added to the US Constitution to relieve all income taxes from the requirement of apportionment and from a consideration of the source of income.
The 16th Amendment was passed by Congress on July 2, 1909, and ratified on February 3, 1913.
